Zimbabwe’s month-on-month inflation surged to 5.8% in September 2024, up from 1.4% in August, driven largely by the sharp depreciation of the newly introduced currency, the Zimbabwe Gold (ZiG).
Since its launch in April 2024, the ZiG has faced increasing volatility, exacerbated by a shortage of US dollars in the market.
The Reserve Bank of Zimbabwe (RBZ) has attributed the currency’s decline largely to speculative activities.
This 4.4 percentage point increase in month-on-month inflation marks the most significant rise since the ZiG’s introduction.
According to the Zimbabwe National Statistics Agency (ZIMSTAT), the all-items Consumer Price Index (CPI) rose 5.8% on average between August and September 2024.
ZIMSTAT said the month-on-month inflation rate reflects the percentage change in the price index compared to the previous month.
For September 2024, the weighted CPI for food and non-alcoholic beverages was the primary contributor to this increase, accounting for 1.5% of the total change in the inflation rate. ZIMSTAT said:
<blockquote>
The month-on-month inflation rate was 5.8% in September 2024, gaining 4,4 percentage points on the August 2024 rate of 1.4%.
This means that prices as measured by the all-items ZWG CPI, increased by an average of 5.8% between August 2024 and September 2024.
The month-on-month inflation rate was 0.7% in September 2024, gaining 0.5 percentage points on the August 2024 rate of 0.2%.
The year-on-year inflation rate for September 2024, as measured by the all-items USD CPI, was 4.2%.
</blockquote>
ZIMSTAT reported that the Food Poverty Line for an individual in September 2024 was set at ZiG446.56.
The Food Poverty Line indicates the minimum amount of money necessary for a person to access a daily energy intake of 2,100 calories, ensuring basic nutritional needs are met. ZIMSTAT said:
<blockquote>
The Total Consumption Poverty Line for one person in September 2024 was ZiG681,79. The Total Consumption Poverty Line is derived by adding the non-food consumption expenditures of an individual below the food poverty line.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

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Zimbabwe's money worth less in September causing prices to go up. The new currency, Zimbabwe Gold, is losing value. People are buying and selling it quickly, making it less valuable. This makes it harder for people to buy things they need. The cost of food and drink has gone up the most. In September, it cost ZiG446.56 for enough food to stay healthy. Overall, prices went up by 5.8% from August. It's now more expensive for people in Zimbabwe to buy what they need to live.

Zimbabwe’s Monthly Inflation Rate Surges To 5.8% In September

Zimbabwe’s annual inflation slowed to 101.3% in July 2023 from 175.8% in June 2023, the latest data from the Zimbabwe National Statistics Agency (ZIMSTAT) shows.
ZIMSTAT also said the month-on-month inflation for July was 89.8 percentage points lower to close in negative territory, -15.3% from 74.5% recorded in June.
ZIMSTAT measures inflation using a weighted average of items priced in Zimbabwean dollars and United States dollars.
In May 2023, ZIMSTAT said the country’s month-on-month inflation rose to 15.7% after gaining 13.3 percentage points on the April 2023 rate of 2.4%.
The year-on-year inflation rose to 86.5% in May from 75.6% in April, said ZIMSTAT.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Zimbabwe's Monthly Inflation Drops To  Minus 15 Percent - ZIMSTAT

On Tuesday, July 4, 2023, the Zimbabwean dollar (ZW$) showed slight signs of strengthening against the <a class="MarkdownLink_linkifiedLink__KxC9G">United States</a> dollar (USD), reaching 5,395.9619 at the <a href="https://www.pindula.co.zw/Reserve_Bank_of_Zimbabwe/">Reserve Bank of Zimbabwe</a>‘s wholesale forex. This is an improvement from the 5,739.7961 recorded on June 29, 2023. Additionally, the central bank reported that the Weighted Average for the day was ZW$580,921.57 per US$1.
The Zimbabwean dollar has recently shown signs of strength, which authorities attribute to various measures introduced to stabilise the macroeconomy and the local currency. However, some analysts are doubtful about the sustainability of the stability, with some suggesting that it is rigged and superficial.
Authorities claim that measures such as requiring <a class="MarkdownLink_linkifiedLink__KxC9G">corporate tax payment</a> in ZW$ have removed liquidity from the market, creating a higher demand for <a class="MarkdownLink_linkifiedLink__KxC9G">the Zimbabwean</a> dollar. However, others argue that the central bank is hoarding the <a class="MarkdownLink_linkifiedLink__KxC9G">Zimbabwean dollar</a>, creating an artificial demand.
Zimbabwean authorities have been attempting to reintroduce the <a class="MarkdownLink_linkifiedLink__KxC9G">Zimbabwean dollar</a> for years after it was abandoned in 2009 due to hyperinflation. However, the <a class="MarkdownLink_linkifiedLink__KxC9G">local currency</a> has frequently lost value, with critics suggesting that the Zimbabwean dollar was reintroduced prematurely. Some, including former Finance Minister Tendai Biti, argue that Zimbabwe should redollarise, as the citizenry has lost confidence in the government, which is the main reason why the local currency cannot stabilise.
Some businesses, service providers and even government departments, have in recent months been rejecting the Zimbabwe dollar citing its volatility and also urging authorities to abandon the Zimbabwean dollar.
Despite this, <a class="MarkdownLink_linkifiedLink__KxC9G">Reserve Bank</a> of Zimbabwe (RBZ) Governor John Mangudya has rejected the idea of dollarisation, stating that Zimbabwe has no capacity to do so. Mangudya encouraged Zimbabweans to embrace the Zimbabwean dollar, emphasising that dollarisation would have negative consequences.
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Zimbabwean Dollar Slightly Strengthens Against US Dollar

Zimbabwe’s annual inflation jumped to 175.8% in June from 86.5% in May, the Zimbabwe National Statistics Agency (ZIMSTAT) said on Monday, 26 June.
Reflecting the sharp price hikes over the past few weeks, month-on-month inflation went up by a significant 58.8 percentage points in June to 74.5%, from 15.7% in May.
ZIMSTAT measures inflation using a weighted average of items priced in Zimbabwean dollars and United States dollars.
In March, economist Prosper Chitambara said that using the blended inflation rate is problematic.  He said:
<blockquote>
The issue is a critical one because companies do not account in blended terms but exclusively in USDs or ZWL so it becomes an issue to have the blended rate as the benchmark inflation.
Interest rate calculation for those borrowing or collective bargaining is going to complicate things.
</blockquote>
Chitambara said the publication of both sets of inflation rates (Blended and ZWL) should continue because most employees earn ZWL and would need to use the rate for collective bargaining.
He argued that companies also report in ZWL and will continue to need the ZWL inflation in order to prepare inflation-adjusted figures.
Just over a week ago, Professor of applied economics at the Johns Hopkins University, Steve Hanke, said Zimbabwe’s year-on-year inflation had reached 1 298 percent.
In May 2023, ZIMSTAT said the country’s month-on-month inflation rose to 15.7% after gaining 13.3 percentage points on the April 2023 rate of 2.4%.
The year-on-year inflation rose to 86.5% in May from 75.6% in April, said ZIMSTAT.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Zimbabwe's Annual Inflation Jumps To 175.8% In June - ZIMSTAT

Zimbabwe’s month-on-month inflation rose to 15.7% in May after gaining 13.3 percentage points on the April 2023 rate of 2.4%.
The year-on-year inflation rose to 86.5% in May from 75.6% in April.
This was said by Zimbabwe National Statistics (ZIMSTAT) director-general Taguma Mahonde in Harare on Friday. He said:
<blockquote>
The month-on-month inflation rate in May 2023 was 15.7% gaining 13.3 percentage points on the April 2023 rate of 2.4%.
The month-on-month inflation rate is given by the percentage change in the index of the relevant month compared with the index of the previous month.
The year-on-year inflation rate is given by the percentage change in the index of the relevant month of the year compared with the index of the same month in the previous year.
</blockquote>
In March this year, Minister of Finance and Economic Development Mthuli Ncube announced that inflation will be measured using a weighted average of items priced in Zimbabwean dollars and United States dollars.
Previously the rate of inflation was based only on items in Zimbabwean dollars.
Former Finance Minister Tendai Biti has said the move by the government to measure inflation using a weighted average of items priced in Zimbabwean dollars and United States dollars is insincere and an attempt to conceal rising inflation.
Biti said the government always comes up with “ridiculous” policies in a bid to cover its “embarrassing failures”.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Monthly Inflation Rate Jumped To 15.7% In May - ZIMSTAT

Professional accountants have engaged the government over the move to measure inflation using a weighted average of items priced in Zimbabwean dollars and United States dollars, the “weighted blended inflation rate”.
Accountants argue the adoption of the weighted blended inflation rate has severe consequences when reporting financials.
Speaking to <a href="https://businesstimes.co.zw/accountants-engage-govt-over-blended-inflation/">Business Times</a>, Institute of Chartered Accountants of Zimbabwe CEO, William Mandisodza, said:
<blockquote>
For now, what I can say is that we are lobbying for some alignment with the policymakers.
Commenting outside those discussions will not create the right environment for ongoing discussions.
</blockquote>
Economist Gift Mugano told the publication that blended inflation was a “rigged methodology”. Said Mugano:
<blockquote>
The major danger here is confidence as the government is not taking responsibility by putting the right measures. It’s like it has run out of ideas.
Government wants to reign in inflation from a rigged methodology and say our inflation is now below 100%.
They are not putting the right measures to deal with inflation and they are now going for rigging and I want to repeat this is pure rigging.
It sends the wrong message in showing that we have failed to deal with inflation.
</blockquote>
He argued that the way the prices are increasing in ZWL$ is different from the way the prices are increasing in US$, therefore, inflation should be calculated using the respective currency either in ZWL$ or US$ but separately. Said Mugano:
<blockquote>
A worker that is paid in ZWL$ is facing a steep price regime whereas the one earning in US$ is enjoying price stability.
It’s not correct to say that the prices in the US have annual inflation of 92%.
That is not correct because prices in hard currency have single-digit inflation.
This is totally misleading and uncalled for.
</blockquote>
In early March 2023, the Minister of Finance and Economic Development Mthuli Ncube promulgated Statutory Instrument 27 of 2023 which read in part, … ‘rate of inflation’ means the general increase in price levels of goods and services measured as a weighted average based on the use of Zimbabwean dollars and United States dollars over a given period of time.”
Using the blended rate, the Zimbabwe National Statistics Agency (ZIMSTAT) said the year-on-year inflation for March was 87.6% and 92.3% in February.
More: <a href="https://zero.pindula.co.zw/">Pindula News</a>

Accountants Engage Govt Over Weighted Blended Inflation Rate

Reserve Bank of Zimbabwe (RBZ) governor John Mangudya has said inflation has stabilised as 70% of all transactions are in US dollars, reported <a href="https://www.newsday.co.zw/business/article/200009985/inflation-is-not-on-paper-you-feel-it-rbz-chief">NewsDay</a>.
Addressing delegates at the release of the Confederation of Zimbabwe Industries (CZI) 2022 Manufacturing Sector Survey last Thursday, Mangudya, however, acknowledged that there has been a widening between the official forex rate and the parallel market rate. He said:
<blockquote>
We have seen the parallel forex market widening over the past three weeks and we have an idea of what is causing it.
Our job is to make sure that we rein in that disparity between the official exchange rate and parallel market (one) and, of course, the effects to make sure it doesn’t go into the private system.
But on inflation, we are happy that it has been going down from about 30%, month-on-month in July 2022, to 0.7% in January, month-on-month, -1,6% in February, and 0,1% in March this year.
Inflation, Hon minister (Industry and Commerce Minister Sekai Nzenza) and colleagues is — if you are in hyperinflation you will feel it. You don’t see it on paper. Inflation is felt.
If you don’t feel inflation — never worry about people and statistics and don’t worry about historical issues, worry about month-on-month inflation.
</blockquote>
According to Zimstat, the annual inflation for March was 87.6%, down from 92.3% in February, while the month-on-month inflation was 0.1% last month from -1.6% in the comparative prior period.
The statistics were based on the new blended calculation measured using a weighted average of items priced in Zimbabwean dollars and United States dollars.
Before the new “blended rate”, inflation was being measured using the local currency only.
A fall in inflation does not mean prices are decreasing. Rather, it reflects the slow pace of price increases.
More: <a href="https://zero.pindula.co.zw/">Pindula News</a>

Zimbabweans Not Feeling Inflation - Mangudya

Economic commentators and trade unionists have criticised the move by authorities to use blended inflation as the benchmark of inflation reading in the country.
Last month the Zimbabwe National Statistics Agency (ZimStat) said the country will now measure inflation using a weighted average of items priced in Zimbabwean dollars and United States dollars.
Previously, the official rate was based only on items in Zimbabwe dollars in spite of the widespread use of US dollars and South African rand.
ZimStat Director General Taguma Mahonde recently told <a href="https://www.businessweekly.co.zw/blended-inflation-inadequate-for-economy-experts/">Business Weekly</a> that the local currency inflation will not be published anymore. He said:
<blockquote>
The S.I. 27 of 2023 which states that, “rate of inflation” means the general increase in price levels of goods and services measured as a weighted average based on the use of Zimbabwean dollars and United States dollars over a given period of time.
The dissemination of inflation rates with effect from the date of publication of this notice shall adopt this method of measuring inflation.
This implies that only the weighted inflation rates will be published.
For the avoidance of doubt, ZWL inflation figures will not be published as per the provision of the aforementioned SI.
Survey data revealed that 79,32 percent of the transactions occur in USD while 20,68 percent occur in local currency.
The weighted inflation reflects these ratios.
</blockquote>
However, economic commentators say using the blended inflation rate is problematic. Economist Prosper Chitambara said:
<blockquote>
The issue is a critical one because companies do not account in blended terms but exclusively in USDs or ZWL so it becomes an issue to have the blended rate as the benchmark inflation.
Interest rate calculation for those borrowing or collective bargaining is going to complicate things.
</blockquote>
Chitambara said the publication of both sets of inflation rates (Blended and ZWL) should continue because most employees earn ZWL and would need to use the rate for collective bargaining.
He argued that companies also report in ZWL and will continue to need the ZWL inflation in order to prepare inflation-adjusted figures.
Accountant, Kudzanai Mugwamba, said:
<blockquote>
It is tough to be an accountant right now because we are already struggling with which exchange rate is the most relevant one, now we are going to be comparing ZWL inflation-adjusted figures to blended inflation figures which then distorts the reporting.
</blockquote>
Trade unionist Peter Mutasa said:
<blockquote>
Blended inflation does not take into account the reality of most employees as they are predominantly paid exclusively in local currency as employers are refusing to pay in blended form. So this means that workers are going to be shortchanged by being underpaid and carrying the cost of exchange rate losses.
Employers will be at an advantage as they will use a lower and irrelevant inflation figure to calculate wages as there is no publishing of local currency inflation.
We will see workers not being able to feed their families because in reality local currency inflation is real and that is what they earn exclusively.
</blockquote>
More: <a href="https://zero.pindula.co.zw/">Pindula News</a>

Blended Inflation Rate Problematic For Economy - Experts

Former Finance Minister Tendai Biti has said the recent move by the government to measure inflation using a weighted average of items priced in Zimbabwean dollars and United States dollars is insincere and an attempt to conceal rising inflation.
Minister of Finance and Economic Development Mthuli Ncube on Friday announced that the country will now measure the “blended” inflation rate.
Biti said the government always comes up with “ridiculous” policies in a bid to cover its “embarrassing failures”. Said Biti:
The Reserve Bank has this incredible but ridiculous capacity of inventing dross and reselling the same.
<blockquote>
Zimbabweans remember the fiction of the 1:1 parity exchange between the Zim $ &amp; the US$.
Operation “gedye gedye” was an embarrassing failure whose sole motive was to cover up billions ..stolen from depositors.
The new fad on the scene is the creature called “ blended inflation “ meant to refer to inflation calculated on a blend of the US$ &amp; the RTGS$.
Inflation is the measure of the price movement of a good over a period of time. Any good has one price so the blend rate is pure undiluted heresy and is a disingenuous attempt to muddle the ever-rising rate of inflation.
Yet another example of incompetence &amp; mendacity of the Central Bank. One trapped in a huge Hypocrisy Trap. Zim inflation remains the highest in the world &amp; no amount of spin can change that.
</blockquote>
Using the blended rate, the Zimbabwe National Statistics Agency (ZIMSTAT) said the year-on-year inflation for February 2023 was 92.3% from 101.5% in January.
Previously the rate of inflation was based only on items in Zimbabwean dollars.
Before Friday’s move to measure the blended inflation rate, ZIMSTAT had measured annual inflation at 229.8% in January and 243.8% in December.
More: <a href="https://zero.pindula.co.zw/">Pindula News</a>

Blended Inflation Rate Is "Pure, Undiluted Heresy" - Biti

Zimbabwe is now measuring inflation using a weighted average of items priced in Zimbabwean dollars and United States dollars (USD), Reuters reported citing a government statement issued on Friday.
Previously the official rate was based only on items in the local currency.
In his 2023 monetary policy statement released earlier in February, <a href="https://www.pindula.co.zw/Reserve_Bank_of_Zimbabwe">Reserve Bank of Zimbabwe (RBZ)</a> governor, <a href="https://www.pindula.co.zw/John_Mangudya">Dr John Panonetsa Mangudya</a>, urged economic players to focus more on blended inflation since large parts of the Zimbabwean economy had dollarised.
The USD is widely used in the country alongside the Zimbabwe dollar and South African rand.
The government relaunched the Zimbabwean dollar in 2019 after a decade of dollarisation, but in 2020 it authorised the use of foreign currencies as part of measures to respond to the Covid-19 pandemic.
Last year, it said the multi-currency system would be maintained for a further five years.
Blended inflation for February stood at 92.3 per cent year-on-year compared to 101.5 per cent in January, the <a href="https://www.pindula.co.zw/Zimbabwe_National_Statistics_Agency_(ZIMSTAT)">Zimbabwe National Statistics Agency (ZIMSTAT)</a> said.
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